Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q4 2007 Earnings Presentation
43 slides from Alliancebernstein Holding L.p's earnings presentation, Jan 24, 2008
Slide 1: Fourth Quarter 2007 Results
Gerald M. Lieberman President & Chief Operating Officer Lewis A. Sanders Chairman & Chief Executive Officer Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. January 23, 2008
Slide 2: Forward-looking statements
Certain statements in this presentation and our accompanying oral remarks are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual resul
Slide 3: Market Performance - U.S.
*12 months ending December 31, 2007. Source: MSCI (Morgan Stanley Capital International). Market Performance - U.S.
Slide 4: Market Performance - Non-U.S.
*12 months ending December 31, 2007. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-U.S.
Slide 5: Investment Performance Summary for 2007
< Growth equity services delivered strong returns, exceeding institutional benchmarks < Value equity services returns fell below institutional benchmarks < Global fixed income results were respectable < Blend Strategies performance was relatively neutral < Diversified hedge fund services returns wer
Slide 6: Changes in AUM by Channel - Three Months
Three Months Ended December 31, 2007 $ Millions Changes in Assets Under Management by Channel
Slide 7: Changes in AUM by Channel - Twelve Months
Twelve Months Ended December 31, 2007 $ Millions Changes in Assets Under Management by Channel
Slide 8: Changes in AUM by Investment Service - Three Months
Three Months Ended December 31, 2007 $ Millions Changes in Assets Under Management by Investment Service
Slide 9: Changes in AUM by Investment Service - Twelve Months
Twelve Months Ended December 31, 2007 $ Millions Changes in Assets Under Management by Investment Service
Slide 10: Institutional Investments Highlights
< Global and International services accounted for approximately 93% of all new accounts in 4Q07 < Blend Strategies represented 30% of all new accounts in 4Q07 < 4Q07 market depreciation of $14 billion in Value services < Pipeline up modestly from 3Q07 at nearly $14 billion < Pipeline includes $4 bil
Slide 11: Retail Highlights
< Non-U.S. weakness drives reduction in 4Q07 flows < 4Q07 market depreciation of $5 billion in Value services < For 2007, growth in U.S. funds more than offset non-U .S. weakness Ø Full year 2007 U.S. net inflows were more than 3 times greater than 2006 < “Investment Strategies for Life” (2) growth
Slide 12: Private Client Highlights
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. Private Client Highlights < Fixed Income services added AUM in 4Q07 via both net inflows and performance < 4Q07 Market depreciation of $3 billion in V
Slide 13: Institutional Research Services Highlights
< Record revenue for both the fourth quarter and full year: Ø 4Q revenue up 33% Y/Y and 14% sequentially, driven by both U.S. and European businesses Ø Full year revenue up 13% < Coverage initiated in Pharmaceuticals (U.S., Europe), Broadline Retail (U.S.), and Telecom Services (U.S.). < Ended 2007
Slide 14: Growth in Global Assets
Non-U.S. up 23% Global & Int’l up 27% Total AUM up 12% by Client Domicile by Investment Service $ Billions Total AUM at Dec 31, 2007 $800 Billion Total AUM at Dec 31, 2006 $717 Billion Growth in Global Assets
Slide 15: Growth in Blend Strategies AUM
Global & Int’l up 27% Non-U.S. up 16% 38% Blend Strategies up 31% F.I. $198 25% Value $299 37% Growth $112 14% Blend Strategies Blend Strategies F.I. $177 25% Value $270 38% Growth $110 15% Global & Int’l up 36% $ Billions (1) 2007and 2006 Blend Strategies AUM include approximately $7 billion and $4
Slide 16: Growth in Hedge Fund Assets
Hedge Fund AUM ($ Billions) The information in this display is provided solely for use in connection with this presentation and is not directed towards existing or potential hedge fund investors or investment advisory clients of AllianceBernstein. Growth for Full Year 2007 = 31% Growth in Hedge Fund
Slide 17: Fourth Quarter Revenues
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions Fourth Quarter Revenues
Slide 18: Fourth Quarter Advisory Fees
NOTE: Percentages are calculated using AUM and revenues rounded to the nearest thousand. Fourth Quarter Advisory Fees
Slide 19: Fourth Quarter Operating Expenses
(1) 4Q06 and full year 2006 General & Administrative expenses include a $56 million claims processing error charge ($54.5 million, net of related income tax benefits). NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions Fourth Quarter Operating Ex
Slide 20: Fourth Quarter Compensation & Benefits
NOTE: Percentages are calculated using expenses rounded to the nearest thousand. $ Millions Fourth Quarter Compensation & Benefits
Slide 21: Fourth Quarter Net Income
(1) 4Q06 and full year 2006 Operating Expenses include a $56 million claims processing error charge ($54.5 million, net of related income tax benefits). NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions Fourth Quarter Net Income
Slide 22: Holding Financial Results
(1) 4Q06 and full year 2006 Diluted Net Income per Unit include a $0.21 and $0.20 per Unit claims processing error charge, respectively. NOTE: Percentages are calculated using income, earnings and expenses rounded to the nearest thousand. $ Millions (except per Unit amounts) Holding Financial Result
Slide 23: AllianceBernstein trademarks
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
Slide 24: Q&A
7B ALLIANCEBERNSTEIN Q&A Fours ovarer20n Reve Proprietary - For AlianceBernstein LP. use only AllianceBemstein | 24
Slide 25: Appendix
7B ALLIANCEBERNSTEIN Appendix ise only AllianceBemsten | 25
Slide 26: Index returns through December 31, 2007
Index S&P 500 Russell 1000 Growth Russell 1000 Value MSCI Emerging Markets MSCI EAFE MSCI World Lehman Aggregate Bond Returns in % through December 31 , 2007. Annualized Cumulative 4Q07 One Year Three Years Three Years (3.3) 55 86 28.2 (0.8) 11.8 87 28.4 (68) (0.2) 93 30.6 3.6 39.4 35.2 146.9 (1.8)
Slide 27: Relative Performance: Institutional Growth Equity
Relative Performance: Institutional Growth Equity (After Fees) (1)
Slide 28: Relative Performance: Institutional Value Equity
Relative Performance: Institutional Value Equity (After Fees) (1)
Slide 29: Relative Performance: Blend Strategies Services
Relative Performance: Blend Strategies Services (After Fees) (1)
Slide 30: Relative Performance: Institutional Fixed Income
Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 31: Absolute Performance: Private Client
Absolute Performance: Private Client (After Fees) (1)
Slide 32: Relative Performance: Retail Growth Equity
Relative Performance: Retail Growth Equity (After Fees) (1)
Slide 33: Relative Performance: Retail Value Equity
Relative Performance: Retail Value Equity (After Fees) (1)
Slide 34: Relative Performance: Retail Fixed Income
Relative Performance: Retail Fixed Income (After Fees) (1)
Slide 35: Relative Performance: Wealth Strategies
Relative Performance: Wealth Strategies (After Fees) (1)
Slide 36: Investment Performance: Delivering Results for Clients
Bernstein Value Equities Inception Date Inception- Dec Alliance Growth Equities Inception Date AllianceBernstein. Past performance is no guarantee of future results. Source: Bloomberg, Citigroup, FTSE, JPMorgan Chase, Lehman Brothers, Merrill Lynch, MSCI, Nomura, Russell Investment Group, Scotia Cap
Slide 37: Consolidated Balance Sheet
In $ Thousands Consolidated Balance Sheet
Slide 38: Consolidated Statement of Cash Flows
In $ Thousands Consolidated Statement of Cash Flows
Slide 39: Headcount Growth
Headcount has increased by 37% since the end of 2003, with the bulk of the growth coming in the last two years Headcount Growth
Slide 40: $16,857 $13,351 $12,003 $10,663 $9,568 $8,303 $8,452 1Q06 06 3Q06 4Q06 1907 2007 3Q07
$16,857 $13,351 $12,003 $10,663 $9,568 $8,303 $8,452 1Q06 2006 3Q06 4Q06 1907 2007 3Q07 4Q07
Slide 41: Net Inflows by Distribution Channel
Net Inflows by Distribution Channel $ Millions
Slide 42: Net Inflows by Investment Service
Net Inflows by Investment Service $ Millions
Slide 43: AllianceBernstein trademarks
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
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